US Online Beauty Retailing Market Report 2022

Overview

• What you need to know
• This Report looks at the following areas
• Definition
• Market context

Executive Summary

• Top takeaways
• Market overview
  • Figure 1: Total US retail sales and forecast of beauty and personal care products, at current prices, 2017-27
• • Figure 2: Online beauty retailing outlook, 2022-27
• Opportunities and challenges
• Enhance the online shopping experience to not lose consumers
• Capitalize on the nature of the online channel to drive discovery and sales
• Build a community online to maximize loyalty
• Key consumer insights

Market Size and Forecast

• Retail sales increase driven by rising prices
  • Figure 3: Total US retail sales and forecast of beauty and personal care products, at current prices, 2017-27
  • Figure 4: Total US retail sales and forecast of beauty and personal care products, at current prices, 2017-27

Segment Performance

• Skincare and bodycare are leaders in market share
• Consumers’ desire to express themselves leads to a pent-up demand for cosmetics
• Haircare is impacted by consumers economical behaviors
• Shaving and hair removal retail sales continue with a sluggish performance

Market Factors

• The economic crisis impacts consumers’ spending on beauty and personal care
  • Figure 5: GDP change from previous period, Q1 2007-Q3 2022
• • Figure 6: Consumer Price Index change from previous period, 2007-22
• There is still room to improve DEI efforts
  • Figure 7: Population, by race and Hispanic origin, 2017-27
  • Figure 8: Mac highlights its zero tolerance for hate on social media, 2022
• Sustainability is becoming more important to consumers
  • Figure 9: Kering teams up with L’Occitane Group to launch a climate fund for nature, 2022
• Technology is infiltrating beauty shoppers’ lives
  • Figure 10: Attitudes toward online beauty retailing, 2022

Competitive Strategies and Market Opportunities

• Pure Culture Beauty takes wholesale approach; opportunity for DTC brands to expand reach and minimize acquisition costs
  • Figure 11: DTC brand Pure Culture Beauty makes its way to retail, 2022
• Sephora expands same-day delivery option and gives consumers delivery options to align with their demands and remain competitive
  • Figure 12: Sephora explores with various types of delivery, 2022
• Cosmetics brand NARS launches digital brand ambassadors; opportunity to leverage digital innovation to engage with consumers
  • Figure 13: NARS launches digital brand ambassadors, 2022

The Beauty and Personal Care Consumer Online – Fast Facts

Online Shopping Frequency

• Consumers continue to choose to shop online
  • Figure 14: Online shopping frequency, 2022
• • Figure 15: Glossier accelerates its omnichannel strategy, 2022

The Starting Point

• Online channels are useful tools to discover and learn about BPC products and brands
  • Figure 16: The starting point, by age, 2022
• Multicultural consumers need guidance on where to start
  • Figure 17: The starting point, by race and Hispanic origin, 2022
• • Figure 18: Google enhanced the shopping experience for its search, 2022

Items Purchased and Shopping Methods

• There are fewer beauty and personal care purchases
  • Figure 19: Items purchased, by year, 2019-22
• • Figure 20: Alleyoop launches Dream Team a multitasking moisturizer, 2022
• Consumers shop for their beauty and personal needs where it is more convenient for them to do so
  • Figure 21: Item purchased by shopping method, 2022
• Beauty and personal care meaning evolves throughout consumers’ lives
  • Figure 22: Item purchased by shopping method, by age, 2022

Retailers Shopped

• Amazon dominates the online channel; there’s room for the category to improve the online shopping experience
  • Figure 23: Retailers shopped, by channel, 2022
• There are opportunities to engage younger consumers with BPC online
  • Figure 24: Retailers shopped online, by age, 2022
• • Figure 25: Popshelf focus on trending product attributes and affordability to appeal to younger beauty shoppers, 2022
• Multicultural consumers look for value in its various forms when shopping online
  • Figure 26: Retailers shopped online, by race and Hispanic origin, 2022
• • Figure 27: JCPenney expands its focus on beauty and inclusivity in partnership with Thirteen Lune, 2022

Retailer Drivers Online

• Consumers want convenience, but they are not necessarily willing to pay for it
  • Figure 28: Retailer drivers online, by gender and age, 2022
• Consumers’ priorities when deciding where to shop can reflect varying lifestyles, interests and financial means
  • Figure 29: Retailer drivers online, by race and Hispanic origin, 2022

Barriers to Shopping Online

• Consumers want to make informed purchase decisions and convenient shopping experiences
  • Figure 30: Barriers to shopping online, by gender, 2022
• Younger consumers evaluate retailers from the beginning of their journey until the end
  • Figure 31: Barriers to shopping online, by age, 2022

Online Shopping Motivators

• Consumers want to explore products without commitments
  • Figure 32: Online shopping motivators, by age, 2022
• • Figure 33: Inn Beauty Project leverages social media to demonstrate the look of its products, 2022
• Support multicultural financial worries to encourage them to shop more online
  • Figure 34: Online shopping motivators, by race and Hispanic origin, 2022
• • Figure 35: Klarna promotes the beauty brand Caudalie, 2022

Shopping Behavior

• The online channel helps consumers make more informed and strategic purchasing decisions
  • Figure 36: Shopping behavior, 2022
• Males are increasingly engaged with beauty and personal care
  • Figure 37: Shopping behavior – Exploration, by gender, 2022
• • Figure 38: Buttahskin leverages social media to engage males, 2022
• Multicultural consumers do their best to economize
  • Figure 39: Shopping behavior – Cost-conscious behaviors, by race and Hispanic origin, 2022
• • Figure 40: Cosrx leveraged social media to inform consumers the brand was part of Black Friday, 2022

Desired Online Content

• Consumers want to make informed purchasing decisions
  • Figure 41: Desired online content, by gender, 2022
• • Figure 42: Merit partners with Cameron Diaz to inspire consumers, 2022
• Relatable and aspirational content is needed to resonate with Black beauty shoppers
  • Figure 43: Desired online content, by race and Hispanic origin, 2022
• • Figure 44: r.e.m.beauty promotes the 60 shades of its game-changing concealer with visual representation, 2022

Social Media Behaviors

• Consumers utilize social media to support their purchase decisions
  • Figure 45: Social media behaviors, by gender and age, 2022
• • Figure 46: Boy Smells highlights its Hypebae Beauty Award, 2022
• Social media is paramount to building relationships with multicultural consumers
  • Figure 47: Social media behaviors, by race and Hispanic origin, 2022

Brand Engagement

• Specialty retailers lead in engagement online
  • Figure 48: Consumer sentiment toward Ulta Beauty, 2022
  • Figure 49: Ulta Beauty launches a retail media network, 2022
• • Figure 50: Brand engagement, by age, 2022
• • Figure 51: Neutrogena makes efforts to appeal to younger consumers, 2022
• Multicultural consumers are more inclined to engage with established brands online
  • Figure 52: Brand engagement, by race and Hispanic origin, 2022
• • Figure 53: Mac cosmetics encourages self-expression through bold makeup trends, 2022

Attitudes toward Online Beauty Retailing

• There are areas of opportunity to improve the online shopping experience
  • Figure 54: Attitudes toward online beauty retailing, by gender, 2022
• The needs of younger consumers are not met yet online
  • Figure 55: Attitudes toward online beauty retailing, by age, 2022
• • Figure 56: Lush Cosmetics remains away from social media, 2022
• Influencers drive knowledge and decision making among consumers active on social media
  • Figure 57: Attitudes toward online beauty retailing – Impact of beauty influencers, by age, race and Hispanic origin, 2022
• • Figure 58: Hailey Bieber enters the beauty industry with the skincare brand Rhode, 2022
• Digital offerings contribute to better serve younger consumers, as well as keep them engaged online
  • Figure 59: Attitudes toward online beauty retailing – Digital offerings, by age, 2022
• • Figure 60: JCPenney partners with Revieve to enhance the shopping experience online, 2022

Appendix – Data Sources and Abbreviations

• Data sources
• Sales data
• Forecast
• Consumer survey data
• Abbreviations and terms
• Abbreviations
• Terms

Appendix – The Market

• • Figure 61: Total US retail sales and forecast of beauty and personal care products, at inflation-adjusted prices, 2017-27
  • Figure 62: Average annual household spending on beauty products, 2017-22
  • Figure 63: Total US retail sales and forecast of beauty products, by segment, at current prices, 2017-27
  • Figure 64: Total US retail sales and forecast of skincare and bodycare products, at current prices, 2017-27
• • Figure 65: Total US retail sales and forecast of cosmetics, at current prices, 2017-27
  • Figure 66: Total US retail sales and forecast of haircare, at current prices, 2017-27
  • Figure 67: Total US retail sales and forecast of shaving and hair removal products, at current prices, 2017-27

Appendix – The Consumer

• • Figure 68: Online shopping frequency, by gender, age, race and Hispanic origin, 2022
• • Figure 69: Median household income, by race and Hispanic origin of householder, 2020